China does not share the same views for NFTs as it does for cryptocurrencies, and the country will devise a new blockchain infrastructure to preserve the local NFT market.
China is mobilizing efforts to make the distinction among non-fungible tokens (NFTs) and cryptocurrencies similar to what it did with digital currencies so that the imposed crypto crackdown does not affect the NFT market in the country.
According to the South China Morning Post, new blockchain infrastructure is to be developed in the spirit of backing individuals and businesses which develop apps and platforms to facilitate the NFT industry by the government-backed blockchain project BSN – The Blockchain-based Service Network.
The project, formally known as the BSN-Distributed Digital Certificate (BSN-DDC), aims to enable the implementation of NFTs by providing application programming interfaces for the building of apps and portals that accept fiat money as the only form of payment.
The CEO of BSN tech support company Red Date Technology, Yifan He, emphasized that NFTs are legal in China as long as they are not utilized with any cryptocurrencies, including Bitcoin (BTC). To facilitate an on-chain governing body, he claimed the next architecture would use an unrestricted blockchain.
He also emphasized that for the NFT market to work independently in China there is an urgent need to develop a low-cost and trustworthy blockchain infrastructure because in its absence NFTs can be launched solely on private chains as at the time being it is illegal to operate public chains within the border of China.
He confirmed that Red Date intends to establish a conforming NFT platform that is totally segregated from the ordinary profile of cryptocurrencies by allowing a single authority to oversee the infrastructure and respond in the case of illicit conduct.
Red Date is working with project partners of DDC to establish a highly transparent network while adhering to Chinese norms and laws, He said. On the BSN-DDC network, all gas fees are paid in fiat currency.
He also added that if international entities want to issue NFTs in China they can do it in Hong Kong, where NFT services to companies will be provided.
BSN’s NFT infrastructure is supported by public China Mobile, China UnionPay, and the State Information Centre. According to He, the BSN-DDC will incorporate ten blockchains, including a modified version of Ethereum, Corda, and WeBank’s Fisco Bcos.
Two global BSN portals are to be developed in Turkey and Uzbekistan per the 2021 agreement signed among Red Date Technology and the Turkish consulting firm, Turkish Chinese Business Matching Center.
The international BSN portal, which hosts major blockchains such as the Ethereum network, Algorand, Polkadot, Tezos, ConsenSys Quorum, Corda, and others, will allow blockchain developers in Turkey and Uzbekistan to construct blockchain-as-a-service applications utilizing the new portals.
Also read:
According to a BofA Analyst, Solana Might Become the “Visa of Crypto”
The Leading Italian Bank Reverses its Stance on The Cryptocurrency Ban
Expert Claims NFTs Will Be Everywhere in the Future Due to Proof of Ownership